X-FAB and Plus Semi agree on sale of X-FAB UK

Erfurt, Germany, December 1, 2009.

X-FAB Silicon Foundries Group, the leading analog/mixed-signal foundry and expert in “More than Moore” technologies, and Swindon-based Plus Semi have agreed on the sale of X-FAB’s wafer fabrication plant in Plymouth, UK, to Plus Semi. The agreement to transfer ownership of X-FAB UK to Plus Semi has been signed by both parties, closing is expected by the end of 2009. A technology license agreement ensures the continuation of the existing operation. Financial details of the deal were not disclosed.

Both companies benefit from this step. X-FAB in a move to strategically align its facilities had opted to either close or sell the Plymouth facility representing a share of less than five percent of X-FAB’s total capacity. In collaboration with Plus Semi, it was possible to find a solution that enables the plant in Plymouth to continue operation under new ownership. Plus Semi, in turn, is able to expand its business into analogue product sales with a wafer fab that represents an ideal fit, technologically and capacity-wise.

Hans-Jürgen Straub, CEO of X-FAB Group, said: “We are glad to have reached a solution that continues operation and maintains jobs at the site in Plymouth, outside the X-FAB organization. The sale is an important milestone for optimizing the X-FAB Group’s capacities.”

Michael LeGoff, Plus Semi Managing Director commented: “This has been the culmination of an enormous effort from all concerned to bring these two former Plessey businesses, Plymouth and Swindon, together again. We have retained our key engineering competence within a design and technology centre in Swindon with approximately 20 employees. Together with the 150 people we will employ at the Plymouth facility we have an exciting opportunity to find significant growth in semiconductor design and manufacture in the lucrative analog/mixed-signal semiconductor markets.”

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About X-FABX-FAB is the leading analog/mixed-signal foundry group manufacturing silicon wafers for analog-digital integrated circuits (mixed-signal ICs). X-FAB maintains wafer production facilities in Erfurt and Dresden (Germany), Lubbock, Texas (US) and Kuching, Sarawak (Malaysia), and employs approximately 2,500 people worldwide. Wafers are manufactured based on advanced modular CMOS and BiCMOS processes with technologies ranging from 1.0 to 0.18 micrometers, for applications primarily in the automotive, communications, consumer and industrial sectors. For more information, please visit www.xfab.com.

About Plus SemiPlus Semi is a trade name of JSFM Consulting Limited. Plus Semi acquired the manufacturing assets and IPR from MHS Electronics UK Limited (in administration) on 1 May 2009. Plus Semi provides world class Bipolar processes on Silicon & SOI and design services for fabless semiconductor companies. The management team were the driving force behind the Zarlink Analog Foundry which derived from Plessey Semiconductors based in Swindon. As a result of the acquisition in May they owned the assets belonging to a leading analog bipolar foundry with a worldwide customer base. Plus Semi has developed a strategy for the design and production of a number of high performance analog products including op amps, prescalers & dividers.